3 Oct 2011

Tax reform back on agenda in Australia

3:13 pm on 3 October 2011

Tax reform is back on the agenda in Australia.

Every few years, the federal government proposes an overhaul of the tax system. But each inquiry only ever makes it more complex.

This week, the government - under pressure from the independents on whom it depends for support - is hosting a two day summit in Canberra to canvass reform options.

But in a highly partisan climate, Radio New Zealand's Sydney correspondent reports that hopes of any solution look unlikely to be met.

Business want an increase in the GST to fund a further cut in company tax. But the government has already ruled that out.

The Greens want a reversal of the compromises it made on the resource rent tax. But having already burnt one PM antagonising the miners, Radio New Zealand's correspondent says the word is out: Don't watch this space.